Trade unions have warned of thousands of job losses following the planned merger of two leading international drugs companies -- Glaxo Wellcome and SmithKline Beecham.

The new group -- to be called Glaxo SmithKline -- will be the world's largest pharmaceuticals company, controlling some seven percent of the medicines market.

But the unions say up to five-thousand jobs could go in Britain.

Company executives say job cuts are expected but they have not given a figure.

The value of shares in the two companies fell after the announcement of the deal which must be approved by the shareholders and government regulators.. Analysts say investors were disappointed that estimated savings as a result of the merger, were not higher. The two companies produce treatments for asthma, diabetes, HIV infection and ulcers

From the newsroom of the BBC World Service